Marketplace Health Insurance: Understanding ACA Premium Tax Credits Before They Expire

Are you considering health insurance through the Marketplace? The Affordable Care Act (ACA) offers premium tax credits that can make coverage much more affordable for those who qualify. These credits are based on your household income and family size, helping to lower your monthly premiums so quality insurance is accessible for all.

To see if you are eligible, you must provide your estimated income and household information when you apply for coverage. In general, people who earn between 100% and 400% of the federal poverty level can qualify. The Marketplace will automatically determine your tax credit amount and apply it to your plan.

You can use your credit right away to reduce your monthly payments or wait to claim it as a lump sum at tax time. It is important to be as accurate as possible with your income estimates when applying as any difference between your estimated credit and actual credit will be settled when you file your tax return.

As it currently stands, these tax credits are set to expire at the end of 2025, meaning that without government action, many will see an increase in monthly health insurance premiums beginning in 2026.